ITM?s unit secures permit to start coal production

Indonesia-listed coal miner PT Indo Tambangraya Megah (ITM), an Indonesian unit of Thai energy conglomerate Banpu Plc said on Friday that it has secured permit from the directorate mineral and coal to start coal production from its East Kalimantan coal miner PT Bharinto Ekatama.

ITM?s CFO Edward Manurung said that the mine would start production early next year with volume of 500,000 tonnes of high CV coal in the first year. Earlier, ITM said that Bharinto mine will start production in 4Q 2011.

Edward said that ITM is still in talks with several foreign buyers to offtake the coal from Bharinto mine, but he did not give the name of potential buyers.

The coal will be transported through about 90-kilometer haul-road to Bunyut river in West Kutai regency.

Bharinto, a third generation of Coal Contract of Work (CCoW) holder, is located in West Kutai regency, East Kalimantan and in Barito Utara regency, Central Kalimantan, covering an area of 22,000 hectares. The mine location is adjacent to ITM?s other mine PT.Trubaindo Coal Mining, which is already in production stage.

The mines will produce coal with CV range of 6,400-6,800 Kcal/kg (ADB). (giok)